Contrary to the current correction phase in the crypto market, the sixth largest cryptocurrency, Solana, maintains its ongoing bullish trend. Following the development of a rising wedge pattern, the SOL price trend is obtaining dynamic support amid the occasional pullbacks.
Thus, this chart pattern is intact, and the current recovery trend in this asset is likely to continue, indicating a bullish outlook on SOL price prediction this Christmas.
Source – TradingView
Amid the general bullish sentiment of the market and dynamic support from an ascending trendline, the Solana price has witnessed an aggressive recovery in the past two months. This ascent indicated at around the $21.1 mark showcased a remarkable recovery of 276.6% to market a new yearly high at $79.6 recently.
However, a look at the daily chart shows that the SOL price movement is confined between two converging trendlines, indicating a rising wedge pattern. This chart pattern commonly leads to a steady rally before triggering a notable correction.
On December 18th, the SOL price witnessed its latest reversal from the lower trendline. This bolstered an 8% upswing to reach the current trading price of $75.82.
This altcoin would need a decisive breakout beyond the wedge boundaries to initiate a directional trend.
Technical Indicators:
RSI Indicator: The weekly RSI slope at 80% reflects a strong bullish phase in the SOL price trend.
EMAs: The 20-day EMA slope continues to provide pullback support to rising SOL prices. A breach below this level would act as an early signal of upcoming correction.
Will SOL Price Correction Extend to $50?
Under the rising wedge influence, the SOL price would likely break below the lower trendline to intensify the sellers’ dominance. The post-breakdown fall could cause prices to tumble 34% down to revisit the $50 psychological level.
On a contrary note, a bullish breakout from the upper trendline may undermine the bearish thesis to lead a breakout rally to $95, followed by $120.
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